MYbank launched the Flourishing Farmer Loan Program, which is an effort to extend financial services to rural China. Because the bank’s program targeted customers who had no experience with banking. MYbank looked to determine credit-worthiness by using big data from Internet transactions to create a nationwide credit-rating system for individuals and small enterprises. Credit-scoring was new to China, and the bank’s pioneering efforts could pave the way for economic development in the rural areas.
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In 2015, MYbank launched the Flourishing Farmer Loan Program, which is an effort to extend financial services to rural China. Because the bank’s program targeted customers who had no experience with banking. MYbank looked to determine credit-worthiness by using big data from Internet transactions to create a nationwide credit-rating system for individuals and small enterprises. Credit-scoring was new to China, and the bank’s pioneering efforts could pave the way for economic development in the rural areas.
MYbank was an offshoot of the Alibaba Internet empire founded by Jack Ma. Ma had built Alibaba’s online platforms to bring buyers and sellers together in China. Having found success in facilitating online transactions, Alibaba began offering financial services. In time, these financial services units were spun out from the Alibaba group, which was first organized under Alipay and rebranded under the name Ant Financial Services Group. By 2013, Ant Financial consisted of Alipay and Alipay Wallet, two services that facilitated online transactions (similar to PayPal); Yu’eBao, a
In March 2014, Ant Financial received regulatory approval to create an online bank-MYbank. MYbank was among the first privately owned banks to be granted approval by the China Banking Regulatory Commission. MYbank was initially authorized to make loans but not accept deposits. Besides looking at models of private ownership, the regulators were evaluating the implications of online banking services.
While cautions, the China Banking Regulatory Commission welcomed new banking models that could increase available capital for private entrepreneurs and encourage
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